Peugeot Hopes New Sedan Will Hike Sales

French auto maker Peugeot expects to see its U.S. sales more than double to 18,000 in 1989 with the introduction of its new 405 sedan, the head of its U.S. operations said Thursday.

Peugeot Motors of America President Pascal Henault said the auto maker hopes the 405 will help re-establish Peugeot in the U.S. market.

So far this year, Peugeot has sold 4,016 cars, down 24% from the 5,293 sold in the first seven months of 1987. Analysts estimate that if sales continue at their current rate, Peugeot will sell 7,266 cars this year.

Henault said Peugeot hopes the sales of the 405 and the current 505 model together will reach 18,000 in 1989.

“We are building our foundation for our future in the United States,” Henault said.

Sales Peaked in ’84

Sales of Peugeots, which were among the European luxury cars recently embraced by the affluent, peaked in the United States in 1984 with 20,000. Since then, sales have fallen off by almost half, mainly because of price increases forced by the weakness of the dollar against the franc.

The auto maker also was plagued by conflicts between the company’s dealers and its U.S. organization. Peugeot has since replaced its U.S. management team and is trying to improve its relationship with its dealers.

Prices for the 405, which has just gone on sale in the United States, start at $14,500 for the basic version; the mid-level 405S model is priced at about $17,700, and the high performance 405 Mi16 at about $20,700.